Smartphone sales plummet as consumers wait for Apple's next big thing

Is it possible to leave the Apple ecosystem?TechRepublic’s Karen Roby asks ZDNet’s Jason Perlow and Jason Cipriani if it’s feasible to happily leave the Apple ecosystem after being invested in their products. Read more: https://zd.net/2XtjT4v

Smartphone shipments in North America fell to a five-year low of 36 million units for the first quarter of 2019, down by eight million units or 18 percent from a record high of 44 million in the same quarter last year.

Canalys, which reported Q1 2019 North American smartphone shipments yesterday, said this was the steepest regional fall ever recorded.

Apple’s overall iPhone shipments were down 19 percent, from 17.9 million units last year to 14.6 million units this quarter. Of these, about 31 percent, or 4.5 million, were the iPhone XR, which Apple has previously said is the best-selling model.

According to Canalys, the iPhone XR was the top selling smartphone in the quarter in North America, accounting for 13 percent of the total 36.4 million units shipped. Samsung’s Galaxy S10 and Galaxy S10e each accounted for 6 percent.

Apple just this week launched an iPhone trade-in ad that positions environmental considerations as the central motivator for consumers, while also conveniently helping new sales when that happens.

“Apple has shown how vital trade-ins have become by moving the mechanism to the front and center of its ordering process, and it now frequently uses the net price in its flagship iPhone marketing,” said research analyst Vincent Thielke.

“The momentum of trade-in promotions in Q2 and Q3 will determine the extent to which Apple can counter negative market forces, such as longer device lifecycles. But the key challenge in coming months remains that its latest iPhones are just not different enough, though new ones are on the way. For its performance to improve in 2020, Apple will need to emphasize radical new features that are most likely to impress consumers.”